Sudan’s central bank steps up its injection of Forex into market

October 7, 2013 (KHARTOUM) – An official at Sudan’s Central Bank (CBoS) has said that additional amounts of foreign exchange will be supplied to commercial banks for the third time in two weeks.

The CBoS assistant governor, Azhari al-Tayeb al-Faki, asserted their ability to meet the demand on Forex to cover the documentary credits as well as the other purposes.

Al-Faki stressed that the CBoS would continue supplying Forex and mentioned that several commercial banks haven’t even spent all Forex it received, saying that more amounts will be provided following the Eid Al-Adha holiday later this month.

Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output.

As a result Sudan had been unable to come up with hard currency needed by individuals or businesses who want to import or send profits overseas.

Informed sources told the pro-government Al-Rayaam daily last week that Qatar agreed to deposit $1 billion with the CBoS, saying that it will help stabilize exchange rates and curb the rise of the dollar on the black market and mobilize production sectors.

However, some observers accuse the government of deliberately feeding false news on Forex receipts in a bid to scare the black market into selling its Forex holdings to ease pressure on the local currency.

The Sudanese pound is now trading at 7.8 to the dollar on the black market which sharply contrasts the official exchange rate of 4.4 but still lower than 8.2 reached over the last few weeks.

(ST)